AN increase of 2.59% is being added to West Devon residents' council tax bills by the borough council.

This equates to an extra £4.85 a year, or nine pence a week, for the average Band D property meaning the average household will pay £192.15 for council services.

The authority has managed to make savings of more than £380,000 through sharing services with South Hams District Council which it says has helped it set the lowest council tax increase in seven years.

Councillors hope it will help people out of the economic downturn.

The council said that despite budget pressures of more than £900,000, it has managed to reduce overheads and make savings of £700,000 without cutting frontline services.

Cllr Margaret Garton, chairman of West Devon Borough Council's strategies and resources committee, said: "We continually strive to look for ways and means, either by working in partnership or looking for innovation, to reduce our overheads and give the public the services they want.

"Strong finances built up over past years and new ways of working have enabled us to keep the council tax increase down to 2.59%.

"The economic conditions against which the budget has been prepared are the worst for a generation. This is a budget that is designed to help our residents and businesses during these hard times."

Last year the council had to use around £400,000 of its savings to balance the budget as its investment income dropped as a result of the recession.

In 2007/08 the council had an annual investment income of £700,000 — this has dropped to just over £100,000 this financial year.

West Devon Borough Council says it is committed to spending more than £800,000 on a wide range of projects to benefit the community which includes the provision of more affordable homes.

Devon County Council takes around 74% of council tax, Devon and Cornwall Police Authority approximately 10%, Devon and Somerset Fire and Rescue 5% and town and parish councils about 2% with the rest going to district/borough councils.